Gold and Silver Prices Rise Amid Fed Rate Cut Speculation
Gold and Silver Prices Rise Amid Fed Rate Cut Speculation
On Monday, December 8, 2025, gold and silver prices experienced notable gains, driven by a weakening U.S. dollar and increasing expectations of a Federal Reserve interest rate cut.
Gold Market Overview
Spot gold climbed 0.5% to $4,215.69 per ounce, while U.S. gold futures remained steady at $4,244.80. The softer dollar, nearing one-month lows, made gold more affordable for foreign buyers, thereby boosting demand. Analysts, including KCM Trade's Tim Waterer, attributed the gold price increase to expectations of looser monetary policy, especially after core PCE data did not hinder rate cut prospects. Source
Silver Market Overview
Silver prices also saw an uptick, rising 0.1% to $58.35 per ounce. This follows Friday’s record of $59.32, with silver having more than doubled in value in 2025. The metal remains perceived as undervalued relative to gold, with bullish demand trends. Source
Platinum and Palladium Performance
Platinum and palladium also gained, rising 0.8% and 0.7%, respectively. These increases reflect broader positive sentiment in the precious metals market. Source
Macroeconomic Drivers
U.S. consumer spending showed only moderate growth in September, suggesting economic momentum is slowing amid a weak labor market and rising living costs. Recent payroll data showing the sharpest job decline in over two and a half years and dovish remarks from Fed officials bolster market sentiment for a rate cut. The CME FedWatch tool indicates an 88% likelihood of a 25-basis-point reduction. Source
Technical Signals and Investor Sentiment
Gold's recent performance has been bolstered by technical indicators, with the metal trading above key moving averages, suggesting sustained bullish momentum. Investor sentiment remains positive, with increased inflows into gold-backed exchange-traded funds (ETFs) and heightened demand for physical gold. Source
In summary, the precious metals market is experiencing upward momentum, driven by macroeconomic factors and investor sentiment. Gold and silver, in particular, are benefiting from a weaker dollar and expectations of a Federal Reserve rate cut, making them attractive options for investors seeking safe-haven assets.
